Get to know what offshoring is, how it can help your business, and what the benefits are. At the same time, compare the benefits of nearshoring vs. offshoring.
Outsourcing means to hire a completely external agency or dedicated team of developers to do the work that you need. It is an agreement between two parties. One party agrees to fulfill specific job and the other party agrees to pay a determined fee for it. Once the job is done, the contract is finished. In the last couple of years, companies have implemented IT outsourcing techniques to achieve an advantageous position in an increasingly globalized world.
Software development outsourcing services to third parties offers many advantages for U.S. businesses, such as reducing fixed costs or being able to focus on its main activity, by outsourcing secondary activities. It has become growing trend to subcontract services between developed and less developed countries. IT outsourcing is key among such services, and may essentially be categorized as either software development services or business process services, such as customer care, call centers, and document processing.
Mexico is considered one of the most important offshoring/outsourcing destinations in Latin America, followed by Brazil and Argentina. Mexico’s success in the offshoring sector is partly down to the recent economic growth and government policy, which has boosted the confidence of both local and foreign investors. Companies are now comfortable turning to Mexico to obtain key services at significant cost savings. Countries that regard Mexico as a valuable offshoring/outsourcing partner include the United States and Canada, which both have long-established commercial ties with the jurisdiction.
However, offshoring is not without problems. Developing business processes thousands of kilometers away brings with it a risk of loss of control of the company, which translates into a loss of quality in production.
Large legal, time, cultural and even geo-political differences mean that in many cases, we need to invest resources in bridging these differences. The consequence of this is that the benefits that outsourcing brings us are almost imperceptible. In order to avoid these drawbacks, a new strategy called Nearshoring has emerged in recent years.
Nearshoring is a model of outsourcing of services similar to offshoring, but unlike this, business process outsourcing is carried out with companies from a nearby country (located about a four-hour flight). Thus, by being in a closer space, both parties benefit. Currently, there are many companies that follow a nearshoring strategy when it comes to outsourcing some of their business processes in border countries. Some of its main advantages are:
Now that you have seen all the major advantages of hiring nearshoring team in Mexico, you would want to know how you can do that and what do you need to take into account if you want to outsource your information technology processes.
Here are some points that you should consider:
At Intersog, we understand the importance of finding a reliable outsourcing partner. Your partner should make you confident and secure of their understanding about the risks and expectations of your project. They should have the correct capabilities to fulfill your goals and objectives. Intersog backs up these necessities with a quality portfolio of projects and clients, and a reputation that consists of success stories, results and documentation.
Your success becomes ours, and we always work with this in our mind. We take our experience, technologies and methodologies and our expert multidisciplinary teams to make this happen.
Intersog is always ready to integrate with your team’s culture, competencies and quality requirements to become your ideal nearshore partner.
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